EX-99.1 2 ea177471ex99-1_cementos.htm CONSOLIDATED RESULTS FOR THE FIRST QUARTER

Exhibit 99.1

 

 

 

 

 

CEMENTOS PACASMAYO S.A.A. ANNOUNCES CONSOLIDATED RESULTS

FOR FIRST QUARTER 2023

 

Lima, Peru, April 26, 2023 – Cementos Pacasmayo S.A.A. and subsidiaries (NYSE: CPAC; BVL: CPACASC1) (“the Company” or “Pacasmayo”) a leading cement company serving the Peruvian construction industry, announced today its consolidated results for the first quarter (“1Q23”). These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).

 

1Q23 FINANCIAL AND OPERATIONAL HIGHLIGHTS:

(All comparisons are to 1Q22, unless otherwise stated)

 

Revenues decreased by 8.6%, mainly due to the impact of cyclone Yaku, causing severe rainfall in our area of influence, affecting our ability to ship cement for some days in March. Nonetheless, if we compare only the first two months of this year with the same period in 2022, revenues only decreased by 1.7%.

 

Sales volume of cement, concrete and precast decreased by 16.4%, mainly due to the above-mentioned reasons. Demand decreased by 23.4% in March as the continued rainfall and uncertainty about its duration affects the ability to build construction.

 

Consolidated EBITDA of S/120.7 million, a 5.3% decrease, mainly due to decreased revenues. However, this quarter’s EBITDA is similar to 4Q22.

 

Consolidated EBITDA margin of 25.1%, a 0.8 percentage point increase.

 

Net income of S/ 43.5 million, a 4.8% decrease mainly due to decreased revenues as mentioned above. However, when compared to 4Q22, net income increased 11.8%.

 

Payment of Senior Notes – On February 8, we paid the outstanding balance of our Senior Notes of US$131,612,000 using the Club Deal credit line.

 

   Financial and Operating Resutls 
   1Q23   1Q22   % Var. 
Cement, concrete and precast sales volume (MT)   738.6    883.8    -16.4%
In millions of S/               
Sales of goods   480.0    525.4    -8.6%
Gross profit   160.6    165.0    -2.7%
Operating profit   86.7    93.6    -7.4%
Net income   43.5    45.7    -4.8%
Consolidated EBITDA   120.7    127.5    -5.3%
Gross Margin   33.5%   31.4%   2.1 pp. 
Operating Margin   18.1%   17.8%   0.3 pp. 
Net income Margin   9.1%   8.7%   0.4 pp. 
Consolidated EBITDA Margin   25.1%   24.3%   0.8 pp. 

 

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MANAGEMENT COMMENTS

 

During this quarter, our country, and particularly the North of Peru was affected by heavy rains and landslides. During March, a cyclone, known as Yaku, reached northern Peru and mainly affected the regions of Tumbes, Piura, Lambayeque and La Libertad. This is an extremely rare meteorological event outside tropical area. Our sales were understandably affected by this event, mainly during March, when sales volume decreased by 23.4% as compared to the same period of 2022. Nonetheless, due to proper cost management and the decrease in the use of imported clinker, we were able to increase our EBITDA margin by almost 1 percentage point, reaching 25.1%. The outlook is still uncertain, especially considering that after the cyclone subsided, heavy rains started again during April due to the increase in the temperature of the ocean. We will continue to focus on efficiencies to deliver the best possible results in the current context.

 

We would like to turn the focus to two main issues that are extremely relevant in today’s complex climate context. First, we want to emphasize, as we have always done, that for Pacasmayo, people will always come first. During these difficult times, that have left many without a home, we have strived to help as much as possible in order to alleviate their losses. In the city of Pacasmayo, an area that is not usually severely affected by rain, floods or landslides, we acted promptly mitigating the devastating effects of cyclone Yaku. We deployed a detailed step-by-step plan that included: 1. Clearing the excess water, that in some areas was over 1-meter-high, 2. Cleaning the solid waste left after the water had been cleared, and 3. Sanitizing the streets. Unfortunately, in most of the country, sewage systems are still precarious, and when rain floods the streets, there’s the possibility of collapsed sewage systems, posing a very alarming safety threat. This is why the immediate clearing and sanitizing is an urgent matter in order to prevent more severe problems. Finally, we would like to mention that, despite the rainfall and flooding, our operations presented no relevant damages and the current construction for the optimization of our Pacasmayo plant has not suffered any delays.

 

The second issue that we would like to focus on, relates to the very evident need for preventive works and resilient construction. Weather patterns such as El Niño, that occurs periodically have devastating effects in our country’s infrastructure. Since these events are recurrent, and climate change is going to potentially make them stronger, more frequent and possibly less predictable, the way in which we build our infrastructure is key to prevent adverse effects. In our own experience, the concrete pavement used in over ten roads and avenues in Piura, has endured the heavy rainfall and flooding, much better than any other alternatives. In a similar manner, the preventive work we did in our quarry in Tembladera, by which we channeled the river, significantly reduced the impact of recent heavy rains in this area. We need to insist on the importance for these preventive works and demand that new construction works have a focus both on sustainability and resilience. Extreme climate patterns will continue, and we need to make sure that, as a country, we are prepared to face them.

 

To sum up, the start of 2023 has brought us some difficulties, which we are facing in the best possible manner, focusing on the support that our people and our country require. However, let us not forget that challenges bring opportunities; we are at a crucial moment to make a difference in the way we face the next natural disaster or climate phenomenon. As a company, we are prepared to tackle the challenge, not only with our products and services, but with our sustained drive for collaborative action, to make sure that sooner, rather than later, we live in a country that has infrastructure that is as resilient as its people.

 

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ECONOMIC OVERVIEW 1Q23:

 

During this quarter, economic activity, especially in the north of the country, was affected by the heavy rains, and landslides that occurred in March. A cyclone, known as Yaku, reached northern Peru and mainly affected the regions of Tumbes, Piura, Lambayeque and La Libertad. This phenomenon, and the rainy season in general, have so far left economic losses estimated in 4,000 million dollars according to Alonso Segura, former Finance Minister.

 

Unfortunately, after the cyclone ended, the rains have continued due to the increase in the temperature of the water, which is above its normal values in the northern and central areas of the Peruvian ocean. During the month of April there has been rainfall above normal, and it is expected to continue for at least a few more weeks.

 

It is important to mention that private investment contracted by 0.5% in 2022 and this trend is expected to continue during 2023. This contraction occurs in a scenario of slow recovery of business confidence, which would have a negative impact on the decisions of new investment projects.

 

At the political level, during 1Q23, there was some stabilization, marked by an improvement in the relationship between the Executive Branch and Congress. Additionally, the announced creation of the National Infrastructure Authority (ANI for its Spanish abbreviation), whose objective is to carry out infrastructure works, as well as disaster prevention tasks and control of hydrographic basins, has the potential to boost new projects in the medium term, especially considering the need to deal with the potential El Niño Phenomenon.

 

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PERUVIAN CEMENT INDUSTRY OVERVIEW:

 

The demand for cement in Peru is covered mainly by Pacasmayo, UNACEM and Cementos Yura, and to a lesser extent by Caliza Inca, imports and other small producers. Pacasmayo mainly covers the demand in the northern region of the country, while UNACEM covers the central region and Cementos Yura the southern region.

 

The northern region of Peru, according to the Instituto Nacional de Estadística e Informática (INEI) and Apoyo Consultoría, represents approximately 32.5% of the country’s population and 16.0% of national Gross Domestic Product (“GDP”). Despite the country’s sustained growth over the last 10 years, Peru continues to have a significant housing deficit, estimated at 1.9 million households throughout the country as per the Ministry of Housing, Construction and Sanitation.

 

In Peru, the majority of cement is sold to a highly fragmented consumer base of individuals that tend to gradually buy bags of cement to build or to improve their homes, a segment the industry refers to as “self-construction”.

 

Northern Region (thousands of metric tons)

 

Plant  2019   2020   2021   2022   As of Feb-23   % part 
Pacasmayo Group   2,615    2,576    3,625    3,437    3,364    23.9%
Imports   13    38    62    2    -    0.0%
Total   2,628    2,614    3,687    3,439    3,364    23.9%

 

Central Region (thousands of metric tons)

 

Plant  2019   2020   2021   2022   As of Feb-23   % part 
UNACEM   5,316    4,172    5,838    6,297    6,252    44.3%
Caliza Inca   513    382    518    515    523    3.7%
Imports   663    493    630    202    157    1.1%
Total   6,492    5,047    6,986    7,014    6,932    49.2%

 

Southern Region (thousands of metric tons)

 

Plant   2019     2020     2021     2022     As of Feb-23     % part  
Grupo Yura     2,584       2,019       2,895       3,047       2,897       20.5 %
Imports     98       189       181       67       69       0.4 %
Total     2,682       2,208       3,076       3,114       2,966       20.9 %
Others     769       732       877       840       840       6.0 %
Total, All Region     12,571       10,601       14,626       14,407       14,102       100.0 %

  

 

 

*Import figures are sourced from Aduanet. They represent quantities of imported cement, not shipped cement.
Source: INEI, Aduanet

 

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OPERATING RESULTS:

 

Production:

 

Cement Production Volume

(thousands of metric tons)

 

   Production 
   1Q23   1Q22   % Var. 
Pacasmayo Plant   352.1    449.8    -21.7%
Rioja Plant   77.0    78.5    -1.9%
Piura plant   294.4    353.4    -16.7%
Total   723.5    881.7    -17.9%

 

Cement production volume at the Pacasmayo plant decreased by 21.7% in 1Q23 as compared to 1Q22 mainly due to decreased cement demand during March, as severe rainfall significantly reduced consumption.

 

In 1Q23, cement production volume at the Rioja plant decreased by 1.9%, mainly due to a moderation in demand.

 

Cement production volume at the Piura plant decreased by 16.7% in 1Q23, mainly due to decreased demand during Cyclone Yaku.

 

Total cement production volume decreased by 17.9% in 1Q23 as compared to 1Q22, mainly due to the above-mentioned temporary decrease in demand.

 

Clinker Production Volume

(thousands of metric tons)

 

   Production 
   1Q23   1Q22   % Var. 
Pacasmayo Plant   230.0    231.7    -0.7%
Rioja Plant   64.0    61.0    4.9%
Piura Plant   257.6    275.0    -6.3%
Total   551.6    567.7    -2.8%

 

Clinker production volume at the Pacasmayo plant during 1Q23 decreased by 0.7%, as we continue to need all of our capacity to satisfy demand, even though it has decreased.

 

Clinker production volume at the Rioja plant increased 4.9% in 1Q23 as compared to 1Q22.

 

Clinker production volume at the Piura plant decreased by 6.3% in 1Q23 as compared to 1Q22 mainly due to the decrease in cement demand mentioned above.

 

Total clinker production volume decreased by 2.8% in 1Q23 when compared to 1Q22 mainly due to lower cement demand.

 

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Quicklime Production Volume

(thousands of metric tons)

 

   Production 
   1Q23   1Q22   % Var. 
Pacasmayo Plant   10.2    18.6    -45.2%

 

Quicklime production volume in 1Q23 decreased by 45.2% when compared to 1Q22 mainly due decreased demand.

 

INSTALLED CAPACITY:

 

Installed Clinker and Cement Capacity

 

Full year installed cement capacity at the Pacasmayo, Piura and Rioja plants remained stable at 2.9 million MT, 1.6 million MT and 440,000 MT, respectively.

 

Full year installed clinker capacity at the Pacasmayo, Piura and Rioja plants remained stable at 1.5 million MT, 1.0 million MT and 280,000 MT, respectively.

 

Full year installed quicklime capacity at the Pacasmayo plant remained stable at 240,000 MT.

 

UTILIZATION RATE1:

 

Pacasmayo Plant Utilization Rate

 

   Utilization Rate 
   1Q23   1Q22   % Var. 
Cement   48.6%   62.0%   -13.4 pp. 
Clinker   61.3%   61.8%   -0.5 pp. 
Quicklime   17.0%   31.0%   -14.0 pp. 

 

Cement production utilization rate at the Pacasmayo plant decreased by 13.4 percentage points in 1Q23 when compared to 1Q22 mainly due to decreased cement demand.

 

Clinker production utilization rate in 1Q23 decreased by 0.5 percentage points despite decreased cement production, as we continue to require all of our available capacity to supply current demand.

 

 

1The utilization rates are calculated by dividing production in a given period over installed capacity. The utilization rate implies annualized production, which is calculated by multiplying real production for each quarter by four.

 

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Quicklime production utilization rate in 1Q23 decreased by 14.0 compared to 1Q22 mainly due to temporary decrease in demand mentioned before.

 

Rioja Plant Utilization Rate

 

   Utilization Rate 
   1Q23   1Q22   % Var. 
Cement   70.0%   71.4%   -1.4 pp. 
Clinker   91.4%   87.1%   4.3 pp. 

 

The cement production utilization rate at the Rioja plant was 70.0% in 1Q23 1.4 percentage points lower than in 1Q22.

 

The clinker production utilization rate at the Rioja plant was 91.4% in 1Q23 4.3 percentage points higher than 1Q22, as we continue to utilize all our clinker capacity.

 

Piura Plant Utilization Rate

 

   Utilization Rate 
   1Q23   1Q22   % Var. 
Cement   73.6%   88.4%   -14.8 pp. 
Clinker   100.0%   100.0%   N/R 

 

The cement production utilization rate at the Piura plant was 73.6% in 1Q23, a 14.8 percentage point decrease when compared to 1Q22, mainly due to a temporary slowdown in demand this quarter because of the flooding as a result of cyclone Yaku.

 

The clinker production utilization rate at the Piura plant continues to be 100.0%, as we produced some clinker for inventory purposes.

 

Consolidated Utilization Rate

 

   Utilization Rate 
   1Q23   1Q22   % Var. 
Cement   58.6%   71.4%   -12.8 pp. 
Clinker   79.4%   81.7%   -2.3 pp. 

 

The consolidated cement production utilization rate decreased by 12.8 percentage points in 1Q23 when compared to 1Q22 in line with the decrease in cement demand, particularly in March.

 

The consolidated clinker production utilization rate decreased by only 2.3 percentage points in 1Q23 when compared to 1Q22, mainly due to the need to utilize all our capacity despite the decreased cement demand.

 

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FINANCIAL RESULTS:

 

Income Statement:

 

The following table shows a summary of the Consolidated Financial Results:

 

Consolidated Financial Results

(in millions of Soles S/)

 

   Income Statement 
   1Q23   1Q22   % Var. 
Sales of goods   480.0    525.4    -8.6%
Gross Profit   160.6    165.0    -2.7%
Total operating expenses, net   -73.9    -71.4    3.5%
Operating Profit   86.7    93.6    -7.4%
Total other expenses, net   -23.5    -28.9    -18.7%
Profit before income tax   63.2    64.7    -2.3%
Income tax expense   -19.7    -19.0    3.7%
Profit for the period   43.5    45.7    -4.8%

 

During 1Q23, revenues decreased by 8.6%, as compared to 1Q22, mainly due to decreased sales volumes. Gross profit decreased by 2.7% in 1Q23 as compared to 1Q22 mainly due to the decrease in revenues, partially offset by lower costs as we decreased the amount of imported clinker used because of lower cement sales volume. Profit for the period decreased by 4.8% in 1Q23 as compared to 1Q22, primarily due to decreased sales, partially offset by some reduced costs and lower income tax expense.

 

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SALES OF GOODS

 

The following table shows the Sales of Goods and their respective margins by business segment:

 

Sales: cement, concrete and precast

(in millions of Soles S/)

 

   Cement, concrete and precast 
   1Q23   1Q22   % Var. 
Sales of goods   447.1    477.6    -6.4%
Cost of Sales   -288.0    -315.9    -8.8%
Gross Profit   159.1    161.7    -1.6%
Gross Margin   35.6%   33.9%   1.7 pp. 

 

Sales of cement, concrete and precast decreased by 6.4% in 1Q23 when compared to 1Q22 mainly due to decreased sales volumes. Despite this decrease, gross margin increased 1.7 percentage point during 1Q23 when compared to 1Q22, mainly due to the reduction in the use of imported clinker.

 

Sales: cement

(in millions of Soles S/)

 

Sales of cement represented 90.8% of cement, concrete and precast sales during 1Q23

 

   Cement 
   1Q23   1Q22   % Var. 
Sales of goods   405.8    423.7    -4.2%
Cost of Sales   -248.6    -264.2    -5.9%
Gross Profit   157.2    159.5    -1.4%
Gross Margin   38.7%   37.6%   1.1 pp. 

 

Sales of cement decreased by 4.2% in 1Q23 as compared to 1Q22 mainly due to lower sales volumes, particularly in March as heavy rainfall and consequent flooding affected demand and our ability to ship cement. Nonetheless, gross margin increased 1.1 percentage points in 1Q23 as compared to 1Q22, mainly due the reduction in the use of imported clinker.

 

Sales: concrete, pavement and mortar

(in millions of Soles S/)

 

Sales of concrete, pavement and mortar represented 8.2% of cement, concrete, and precast sales during 1Q23.

 

   Concrete, pavement and mortar 
   1Q23   1Q22   % Var. 
Sales of goods   36.6    47.1    -22.3%
Cost of Sales   -34.0    -43.0    -20.9%
Gross Profit   2.6    4.1    -36.6%
Gross Margin   7.1%   8.7%   -1.6 pp. 

 

Sales of concrete, pavement and mortar decreased by 22.3% during 1Q23 as compared to 1Q22, mainly due to decreased public and private investment and the negative effect the rainfall and flooding has in the construction sector. Gross margin decreased by 1.6 percentage points in 1Q23 as compared to 1Q22 mainly due to lower dilution of fixed costs.

 

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Sales: precast

(in millions of Soles S/)

 

Sales of precast represented 1% of cement, concrete, and precast sales during 1Q23.

 

   Precast 
   1Q23   1Q22   % Var. 
Sales of goods   4.7    6.8    -30.9%
Cost of Sales   -5.4    -8.7    -37.9%
Gross Profit   -0.7    -1.9    -63.2%
Gross Margin   -14.9%   -27.9%   13.0 pp. 

 

During 1Q23, precast sales decreased by 30.9% as compared to 1Q22, mainly due to a decrease in sales volume for the public sector. Gross margin in 1Q23 was negative, mainly due to higher prices of raw materials and low dilution of fixed costs for heavy precast as, demand has stalled for lack of larger projects as well as the effects of the flooding during this quarter.

 

Sales: Quicklime

(in millions of Soles S/)

 

   Quicklime 
   1Q23   1Q22   % Var. 
Sales of goods   11.1    14.4    -22.9%
Cost of Sales   -9.5    -13.3    -28.6%
Gross Profit   1.6    1.1    45.5%
Gross Margin   14.4%   7.6%   6.8 pp. 

 

During 1Q23, quicklime sales decreased by 22.9%, when compared to 1Q22 mainly due to decreased sales volume. However, gross margin increased 6.8 percentage points in 1Q23, because of lower prices of raw materials, as well as our focus on higher margin products.

 

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Sales: Construction Supplies2

(in millions of Soles S/)

 

   Construction Supplies 
   1Q23   1Q22   % Var. 
Sales of goods   21.8    33.4    -34.7%
Cost of Sales   -21.9    -31.1    -29.6%
Gross Profit   -0.1    2.3    N/R 
Gross Margin   -0.5%   6.9%   -7.4 pp. 

 

During 1Q23, construction supply sales decreased by 34.7% when compared to 1Q22, and gross margin decreased by 7.4 percentage point, in line with the temporary decrease in sales of cement and other construction materials because of the rainfall and flooding in March.

 

OPERATING EXPENSES:

 

Administrative Expenses

(in millions of Soles S/)

 

   Administrative expenses 
   1Q23   1Q22   % Var. 
Personnel   31.7    26.8    18.3%
Third-party services   18.2    16.8    8.3%
Board of directors   1.5    1.5    N/R 
Depreciation and amortization   4.3    3.9    10.3%
Other   2.0    4.4    -54.5%
Total   57.7    53.4    8.1%

 

Administrative expenses increased 8.1% in 1Q23 as compared to 1Q22, mainly due to increased personnel expenses as a result of increased workers’ profit sharing and an increase in salaries in line with inflation.

 

 

2Construction supplies include the following products: steel rebar, wires, nails, corrugated iron, electric conductors, plastic tubes and accessories, among others.

 

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Selling Expenses

(in millions of Soles S/)

 

   Selling and distribution expenses 
   1Q23   1Q22   % Var. 
Personnel   10.2    10.4    -1.9%
Advertising and promotion   2.1    2.0    5.0%
Third-party services   1.5    1.8    -16.7%
Other   3.7    2.8    32.1%
Total   17.5    17.0    2.9%

 

Selling expenses increased slightly, 2.9% in 1Q23 when compared to 1Q22, mainly due to expenses related to the development of digital platforms.

 

EBITDA RECONCILIATION:

 

Consolidated EBITDA

(in millions of Soles S/)

 

   Consolidated EBITDA 
   1Q23   1Q22   % Var. 
Net Income   43.5    45.7    -4.8%
+ Income tax expense   19.7    19.0    3.7%
- Finance income   -1.4    -0.6    N/R 
+ Finance costs   25.7    22.8    12.7%
+/- Net loss on the valuation of trading derivative financial instruments   -    0.1    N/R 
+/- Net loss from exchange rate   -0.8    6.5    N/R 
+ Depreciation and amortization   34.0    34.0    -0.3%
Consolidated EBITDA   120.7    127.5    -5.3%

 

Consolidated EBITDA decreased by 5.3% in 1Q23 when compared to 1Q22, mainly due to the temporary decrease in demand, especially during March due to the negative effects of cyclone Yaku.

 

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Cash and Debt Position:

Consolidated Cash (in millions of Soles S/)

 

As of March 31, 2023, the cash balance was S/45.3 million (US$ 12.0 million). This balance includes certificates of deposit in the amount of S/ 9.0 million (US$ 2.4 million), distributed as follows:

 

Certificates of deposits in Soles

 

Bank  Amount (S/)   Interest Rate   Initial Date   Maturity Date 
Banco de Crédito del Perú   S/. 5.5    7.18%   March 31, 2023    April 4, 2023 
Banco de Crédito del Perú   S/. 3.5    7.18%   March 31, 2023    April 3, 2023 
                     
    S/. 9.0                

 

The remaining balance of S/ 36.3 million (US$ 9.6 million) is held mainly in the Company’s bank accounts, of which US$ 4.6 million are denominated in US dollars and the balance in Soles.

 

DEBT POSITION:

 

Consolidated Debt

(in millions of Soles S/)

 

Below are the contractual obligations with payment deadlines related to the Company’s debt, including interest.

 

    Payments due by period  
    Less than 1 year     1-3 Years     3-5 Years     More than 5 Years     Total  
Indebtedness     307.3       312.7       312.7       687.3       1,620.0  
Future interest payments     100.7       147.3       111.1       100.3       459.4  
Total     408 .0      460 .0      423.8       787.6       2,079.4  

 

As of March 31, 2023, the Company’s total outstanding debt, as shown in the financial statements, reached S/ 1,612.2 million (US$ 428.2 million). This debt is primarily composed by the two issuance of the local bond issued in January, 2019 and part of the club deal obtained last year. In February 2023, we paid in full the outstanding balance of US$ 131,612,000 related to our 4.50% Senior Notes due 2023 at maturity using proceeds from the Club Deal credit line, and we also settled the US$ 132,000,000 in related derivative financial instruments.

 

As of March 31, 2023, Net Adjusted Debt/EBITDA ratio was 3.2 times.

 

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Capex

(in millions of Soles S/)

 

As of March 31, 2023 the Company invested S/ 76.2 million (US$ 20.2 million), allocated to the following projects:

 

 

   1Q23
Projects     
Pacasmayo Plant Projects   72.9 
Concrete and aggregates equipment   2.5 
Rioja Plant Projects   0.4 
Piura Plant Projects   0.4 
Total   76.2 

 

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ABOUT CEMENTOS PACASMAYO S.A.A.

 

Cementos Pacasmayo S.A.A. is a cement company, located in the Northern region of Peru. In February 2012, the Company’s shares were listed on The New York Stock Exchange - Euronext under the ticker symbol "CPAC". With more than 65 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such ready-mix concrete and precast materials. Pacasmayo’s products are primarily used in construction, which has been one of the fastest-growing segments of the Peruvian economy in recent years. The Company also produces and sells quicklime for use in mining operations.

 

For more information, please visit: http://www.cementospacasmayo.com.pe/

 

Note: The Company presented some figures converted from Soles to U.S. Dollars for comparison purposes. The exchange rate used to convert Soles to U.S. dollars was S/ 3.765 per US$ 1.00, which was the average exchange rate, reported as of March 31, 2023 by the Superintendencia de Banca, Seguros y AFP’s (SBS). The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters.

 

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

 

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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of March 31, 2023 (unaudited) and December 31,2022 (audited)

 

   As of Mar-23   As of Dec-22 
   S/ (000)   S/ (000) 
Assets        
Current Assets        
Cash and cash equivalents   45,273    81,773 
Other financial instruments   -    86,893 
Trade and other receivables, net   101,735    101,491 
Income tax prepayments   12,137    8,268 
Inventories   930,233    884,969 
Prepayments   26,204    25,059 
Total current assets   1,115,582    1,188,453 

 

   As of Mar-23   As of Dec-22 
   S/ (000)   S/ (000) 
Non-current assets        
Trade and other receivables, net   43,546    43,543
Financial instruments designated at fair value through OCI   274    274 
Property, plant and equipment, net   2,048,678    2,007,838 
Intangible assets, net   58,651    56,861 
Goodwill   4,459    4,459 
Deferred income tax assets   9,158    9,005 
Right-of-use assets   3,209    3,639 
Other assets   86    89 
Total non-current assets   2,168,061    2,125,708 
Total assets   3,283,643    3,314,161 

 

   As of Mar-23   As of Dec-22 
   S/ (000)   S/ (000) 
Liabilities and equity        
Current liabilities        
Trade and other payables   219,738    284,554 
Financial obligations   306,055    618,907 
Lease liabilities   2,004    2,005 
Income tax payable   17,184    16,340 
Provisiones   42,480    31,333 
Total current liabilities   587,461    953,139 

 

   As of Mar-23   As of Dec-22 
   S/ (000)   S/ (000) 
Non-current liabilities        
Financial obligations   1,306,153    974,264 
Lease liabilities   1,798    2,350 
Provisions   15,881    47,638 
Deferred income tax liabilities   132,208    141,635 
Total non-current liabilities   1,456,040    1,165,887 
Total liabilities   2,043,501    2,119,026 

 

   As of Mar-23   As of Dec-22 
   S/ (000)   S/ (000) 
Equity        
Capital stock   423,868    423,868 
Investment shares   40,279    40,279 
Investment shares holds in Treasury shares   -121,258    -121,258 
Additional paid-in capital   432,779    432,779 
Legal reserve   168,636    168,636 
Other accumulated comprehensive results (loss)   -16,272    -17,787 
Retained earnings   312,110    268,618 
Total Equity   1,240,142    1,195,135 
Total liability and equity   3,283,643    3,314,161 

 

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CONSOLIDATED STATEMENTS OF PROFIT AND LOSS

For the three-month periods ended March 31, 2023 and 2022 (both unaudited)

 

    1Q23     1Q22
    S/ (000)     S/ (000)  
Sales of goods     479,995       525,409  
Cost of sales     -319,400       -360,444  
Gross profit     160,595       164,965  
                 
Operating income (expenses)                
Administrative expenses     -57,729       -53,389  
Selling and distribution expenses     -17,534       -16,970  
Other operating (expenses) income, net     1,403       -1,024  
Total operating expenses , net     -73,860       -71,383  
                 
Operating profit     86,735       93,582  
                 
Other income (expenses)                
Finance income     1,355       558  
Financial costs     -25,721       -22,795  
Accumulated net loss due on settlement of derivative financial instruments     19       -109  
Loss from exchange difference, net     823       -6,514  
                 
Total other expenses, net     -23,524       -28,860  
                 
Profit before income tax     63,211       64,722  
                 
 Income tax expense     -19,719       -18,997  
                 
Profit for the period     43,492       45,725  
                 
Earnings per share                
Basic profit for the period attributable to equity holders of common shares and investment shares of the parent (S/ per share)     0.10       0.11  

 

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the three-month periods ended March 31, 2023, 2022 (unaudited)

 

   Attributable to equity holders of the parent 
   Capital
stock
   Investment
shares
   Investments shares hold in treasury   Additional paid-in capital   Legal
reserve
   Unrealized gain (loss) on financial instruments designated at fair value   Unrealized gain (loss) on
cash flow hedge
   Retained earnings   Total
equity
 
   S/(000)   S/(000)   S/(000)   S/(000)   S/(000)   S/(000)   S/(000)   S/(000)   S/(000) 
                                     
Balance as of January 1, 2022   423,868    40,279    (121,258)   432,779    168,636    (15,869)   (4,225)   271,595    1,195,805 
Profit for the period   -    -    -    -    -    -    -    45,725    45,725 
Other comprehensive income   -    -    -    -    -    -    1,442    -    1,442 
Total comprehensive income   -    -    -    -    -    -    1,442    45,725    47,167 
                                              
Balance as of March 31, 2023   423,868    40,279    (121,258)   432,779    168,636    (15,869)   (2,783)   317,320    1,242,972 
                                              
Balance as of January 1, 2023   423,868    40,279    (121,258)   432,779    168,636    (16,267)   (1,520)   268,618    1,195,135 
Profit for the period   -    -    -    -    -    -    -    43,492    43,492 
Other comprehensive income   -    -    -    -    -    -    1,520    -    1,520 
Other   -    -    -    -    -    (5)   -    -    (5)
Total comprehensive income   -    -    -    -    -    (5)   1,520    43,492    45,007 
Balance as of March 31, 2023   423,868    40,279    (121,258)   432,779    168,636    (16,272)   -    312,110    1,240,142 

 

 

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